TMI Blog2020 (9) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... en the definition itself says that it is used as a major supplement for cattle feed. The maize bran supplied by them to the farmers would not be directly fed to cattle but be mixed with the cattle feed before feeding it to the cattle. In view of the above, it can be seen that maize bran in itself is not a cattle feed but is a major ingredient used in the manufacture of cattle feed as submitted by the applicant. Thus, the applicant by themselves have contradicted their contention through their submission. The applicant has supplied 10.9510 tonnes of Wet Bran to Gopal Co., Kathwada, Gujarat, India. The applicant is classifying their product Wet Bran and not as cattle feed . It is also seen that Maize Bran is specifically mentioned in Sub-heading No.23021010 of the First Schedule to the Custom Tariff Act, 1975 (51 of 1975) and the word Bran is specifically mentioned in Sr.No.103A of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017. In view of the above, the product maize bran does not warrant classification under Sr.No.102 of Notification No.2/2017-Central Tax (Rate) as the product does not classify as cattle feed and is correctly classifiable as Bran u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturers engaged in manufacturing cattle feed who often mix maize bran with other maize processing by-product. 2.6 The applicant further submitted that under the Central Regime they were classifying the Maize bran under CTH No. 23021010 of the First Schedule to CETA, 1985. The applicant submitted the copy of ER-1 Return for the Month of April- 2017 to June-2017 filed under the Central Excise regime and marked as Annexure-2. Taxation under GST Regime 3.1 The applicant has submitted that Central Govt. has issued Not. No. 01/2017 C.T (Rate) dated 28.06.2017 in exercise of power under Section 9(1) of CGST Act, 2017. The said Notification by way of explanation (1) thereto clarifies the term Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). 3.3 Further, applicant submits that the Explanation-2 to the aforesaid Notification clarifies that the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upplying the Maize Bran by charging GST at the rate of 5%. (A copy of the sample invoice is submitted). 4. Regarding the interpretation of law/facts in respect of the question on which advance is required, the applicant has quoted Sections 95 to 106 of the CGST Act, 2017 and stated that the question on advance ruling put forward by him is in respect of determination of whether the liability to pay tax on any goods or services or both, and also the applicability of a notification issued under the provisions of the GST Act is covered under Section 97(b) and (e) and therefore the applicant satisfies the criterion required for filing the application for advance ruling. 5. The applicant submitted that the maize bran is supplied by them to local farmers and manufacturers of the cattle feed for use as cattle feed only; that maize bran is one of the most important cereals used in animal/cattle feed and the same being rich in nutrients forms a major ingredient for cattle feed, is produced in wet or dry form both and is widely used in complete feeds for dairy , beef cattle, poultry, swine and pet foods; that since the same is understood as a cattle feed in common parlance and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by their representative Ms. Yashasvi Jain at the time of personal hearing. We have also considered the issues involved on which Advance Ruling is sought by the applicant. 10. At the outset, we would like to state that the provisions of both the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017 are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the GGST Act. 11. On going through the submission given by the applicant, we find that they are engaged in the manufacture and supply of Maize starch and its derivatives in their plant at Village Dalpur, Himmatnagar, Gujarat and during the course of manufacture of the said product, Maize Bran is produced as a by-product by corn wet milling. The applicant has also stated that (i) Bran is the hard-outer layers of cereal grain and along with germ, it is an integral part of whole grains and is often produced as a by-product of milling during the production of refined grains. (ii) Maize Bran is found in three different forms: (a) Maize Bran dry (b) Maize Bran wet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s specified in Schedule III, (iv) 14 per cent. in respect of goods specified in Schedule IV, (v) 1.5 per cent. in respect of goods specified in Schedule V, and (vi) 0.125 per cent. in respect of goods specified in Schedule VI Further, Explanation (iii) and (iv) of the said Notification reads as under: (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 13. On going through the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), it is observed that Bran falls under the Sub-heading 2302 of the Customs Tariff Act, 1975. The said entry as appearing in the Customs Tariff is described hereunder: 2302 BRAN, SHARPS AND OTHER RESIDUES, WHETHER OR NOT IN THE FORM OF PELLETS, DERIVED FROM THE SIFTING, MILLI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , concentrates and additives, wheat bran and de-oiled cake] ; Also, Sr.No.102 of Notification No.2/2017-Central Tax(Rate) dated 28.06.2017 which specified goods in respect of which effective rate of CGST as NIL( as amended vide Notification No.7/2018-Central Tax (Rate) dated 25.01.2018) reads as under: Sr. No. Chapter Heading/Sub-heading/Tariff Item Description of Goods 01. 2301, 2302, 2308, 2309 Aquatic feed including shrimp feed and prawn feed, poultry feed and cattle feed, including grass, hay and straw, supplement and husk of pulses, concentrates and additives, wheat bran and de-oiled cake(other than rice-bran) It can therefore be seen, that the products which were left out from Sr.No.103A of Notification No.1/2017-Central Tax (Rate) dated 28.06.2017 have found mention in Sr.No.102 of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017. 16. First of all, we need to know the definition of Maize bran. As per dictionary, Maize Bran is defined as under: Maize Bran is a by-product of various maize processing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct Classification of the product Quantity Rate of SGST + CGST 006617 dated 06.08.2018 Gopal Co., Kathwada, Gujarat, India. Wet Bran 23021010 10.9510 tonnes 2.5% SGST + 2.5% CGST It can be seen from the above, that the applicant has supplied 10.9510 tonnes of Wet Bran to Gopal Co., Kathwada, Gujarat, India. It can be seen from the above that applicant is classifying their product Wet Bran and not as cattle feed . It is also seen that Maize Bran is specifically mentioned in Sub-heading No.23021010 of the First Schedule to the Custom Tariff Act, 1975 (51 of 1975) and the word Bran is specifically mentioned in Sr.No.103A of Notification No.2/2017-Central Tax (Rate) dated 28.06.2017. In view of the above, we are of the opinion that the product maize bran does not warrant classification under Sr.No.102 of Notification No.2/2017-Central Tax (Rate) as the product does not classify as cattle feed and is correctly classifiable as Bran under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two different heads, he can claim more benefit and it is duty of authorities to grant such benefits if applicant is entitled to such benefit. (vi) As per the case of HCL ltd. v/s Collector of Customs, New Delhi-2001 (130) ELT 405 (SC), when pluralities of exemptions are available, the assessee has the option to choose any of the exemptions, even if the exemption so chosen is generic and not specific. 18.1 On going through the above judgments /cases cited by the applicant it is observed that the same have been quoted for the purpose of using the interpretations contained therein to support their contention i.e. (i) classification is to be based on statutory definition, if any, and in the absence thereof on trade or common parlance (ii) goods are to be classified according to their popular meaning as understood in the commercial sense and not as per the scientific/technical meaning.(iii) it is a well settled legal proposition of law that liberal construction is to be given to beneficial notification and therefore the production should be classified on the basis of it s use. (iv) goods have to be assessed in the form in which they are cleared from the factory. (v) if the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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